Big shake-up in Apple distribution in South Africa

Staff Writer 24 April 2024

Asbis will become South Africa’s second official Apple distributor, ending Core Group’s two-decade exclusivity.

Asbis Group is a leading value-added distributor globally, with subsidiaries in 30 countries. It employs 2,500 and serves 20,000 B2B customers in 60 countries.

Asbis is the official distributor of Apple products in eleven countries of the former Commonwealth of Independent States.

As part of its offering in these countries, it operates 27 iSpace stores, which act as an authorised distributor for Apple products.

These iSpace stores are Apple mono-brand stores, similar to Apple’s well-known first-party stores (Apple Stores) found worldwide.

This makes Asbis well-positioned to extend its offering to South Africa and the rest of Africa through a regional office.

Asbis South Africa’s head office is in Johannesburg. Its operations extend to the Southern, North, and Eastern parts of Africa.

“Whether you are based in Johannesburg, Cape Town, Gaborone, or even Accra, we will deliver to you,” Asbis said.

Asbis South Africa already has numerous prominent brands in its portfolio, including Logitech, Bang & Olufsen, Seagate, Ubiquiti, and Prestigio.

In February, Asbis announced that it had extended its warehouse space in Johannesburg. It is now a state-of-the-art 3,000-square-meter distribution centre.

The company said, “Asbis Africa ensures swift and efficient delivery of all products, enabling customers to access cutting-edge technology without delay.”

Asbis Africa said expanding collaborations with global technology leaders to the South African region was part of its strategy to increase its regional presence.

Asbis has been granted the second Apple distribution license in South Africa and is currently signing up resellers for these products.

Adding Apple to its brand portfolio will give it a tremendous boost in South Africa. It is the world’s top smartphone and computer hardware brand, with millions of loyal customers.

With Asbis set to become the second official Apple distributor in South Africa, it will put tremendous pressure on Core Group.

As the sole official distributor of Apple products in South Africa, Core Group have often been accused of inflated prices.

However, the company dismissed these concerns, saying South African consumers do not consider import duties, forward cover, and other costs when comparing prices.

Core Group further argued that its monopoly on Apple products was good for the brand because it provided the company with the money needed for marketing.

The distributor said a more competitive market with multiple distributors would cause resellers to negotiate for better prices.

In such a scenario, Core Group said, margins will shrink, leaving them with less money for marketing and related activities.

This scenario is now becoming a reality with the entrance of Asbis into the South African market.